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Proof of Funds - Tips and Tricks

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GrantM

I used mine as proof of funds...

I got a statement from Liberty, created an excel document showing total in the fund, less tax and the net payable to me. I also included a copy of the tax guide documenting the tax rates that I used as well as a print screen from x-rates proving the exchange rate that I used to convert the amounts into CAD.

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Guest

OK, I stand to be corrected then. However we were informed by our immigration attorney that it was not acceptable, hence why we passed that information on.

Seems to be one of those grey areas....

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GrantM

OK, I stand to be corrected then. However we were informed by our immigration attorney that it was not acceptable, hence why we passed that information on.

Seems to be one of those grey areas....

May even depend on the immigration officer that gets your file.

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Guest

May even depend on the immigration officer that gets your file.

Spot on Grant. We were advised by our Immigration Consultant and used our Liberty Pension Statements as proof of funds. I would agree with WernerC's interpretation of the word "unencumbered". All part of the stress of immigration, an important decision that can impact your life is left to the interpretation of a regulation by an immigration officer? Crazy isn't it!

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Timmie23

Now I'll be able to sleep again tonight.

Was stressed out a bit about the pension story. Glad others have confirmed now that it is possible to use it.

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Druce

I used my pension (MIBCO - Motor Industry Bargaining Council) as proof of funds when I applied to Manitoba Provincial Nomination Program and they accepted it. I dont have to send any proof of funds to CIC for PR application, just an amount, as this was already checked by MPNP.

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PsyCLown

So while we are on the topic of Proof of Funds, how much is required?

Someone I know who recently moved to Canada said that you require a minimum of R150k and a minimum of an additional R10k per additional child you are taking with you? I only have myself who will be going over - does R150k sounds about right or is more / less required?

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GrantM

So while we are on the topic of Proof of Funds, how much is required?

Someone I know who recently moved to Canada said that you require a minimum of R150k and a minimum of an additional R10k per additional child you are taking with you? I only have myself who will be going over - does R150k sounds about right or is more / less required?

This is for skilled workers via express entry.

http://www.cic.gc.ca/english/immigrate/skilled/funds.asp

Edited by GrantM
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TraceyOB

Hi!

 

Sorry if this has been asked already, I have been scouring the forum! When you submit POF, do you just need to submit bank statements for the account that the cash is in or do you need to submit statements for all your bank accounts i.e. the POF savings account, cheque account and credit card?

 

Thanks!

 

 

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MaryJane
12 hours ago, TraceyOB said:

Hi!

Sorry if this has been asked already, I have been scouring the forum! When you submit POF, do you just need to submit bank statements for the account that the cash is in or do you need to submit statements for all your bank accounts i.e. the POF savings account, cheque account and credit card?

Thanks!

Hi @TraceyOB, according to the CIC website:

Document requirements

  • The applicant should provide an official letter(s) from one or more financial institutions that lists all current bank and investment accounts as well as outstanding debts, such as credit card debts and loans.
    • o The letter(s) must be printed on the letterhead of the financial institution and must include the applicant’s name, the contact information of the financial institution (address, telephone number and email address), the account numbers, the date each account was opened and the current balance of each account as well as the average balance for the past six months.
  • Other documents may also be requested, as necessary.

Information from here - http://www.cic.gc.ca/english/resources/tools/perm/express/intake-complete.asp

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Karen 1225

While we are on the topic. As far as i understand funds does not give you extra points its just needed to rpoof that you will be able to look after yourself. Does the amount of funds you have affect your chances for a province to give you a nomination. We have a flexi reserve on our house but i thought it safest to start a seperate savings account, if proof of funds is needed before we have the money in the savings i will use the flexi reserve. So i stated CAD17000 for funds, a bit more than the minimum required ( just me and hubby) BUT if more funds will get me a nomination then we do have it available but having a house in my mind is actually a liability, we have a house in mosselbay, been on the market for 2 years so really scared thT we wont get it sold before we leave.

 

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Qrios1
On Tuesday, October 27, 2015 at 8:56 PM, GrantM said:

I used mine as proof of funds...

I got a statement from Liberty, created an excel document showing total in the fund, less tax and the net payable to me. I also included a copy of the tax guide documenting the tax rates that I used as well as a print screen from x-rates proving the exchange rate that I used to convert the amounts into CAD.

Hi @GrantM we are planning to use the same approach for POF. Can anyone please confirm if we still have to attach bank statements, average balance and letter from bank manager.  We have a little savings in bank but our main source is both of our pensions.  Thanks so much 

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MaryJane
2 hours ago, Karen 1225 said:

Does the amount of funds you have affect your chances for a province to give you a nomination. 

No, not unless you're going through an Investor route. But you need serious megabucks for those.

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Frank

Hi, while on this unfortunate topic (and not to hijack it, but it ties into the topic) we are going the route of pension fund as POF. Would our credit card debt be subtracted from the pension to arrive at the available funds? We are then slightly screwed as we are funding Wes and ielts (and some very important personal matters) on credit ? as we do not have any surplus savings unfortunately 

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Marelke Roux

After reading this thread I think I am a bit on the fence regarding what to do..

I was under the impression that one could get a statement from your provident fund showing the amount that will be paid out after tax deduction, and submit that as your POF?

Our savings account currently only has CAD12000 and we would rely on the provident fund for the rest.

 

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RikusF

Hi All

I'm not 100% sure about whether it would suffice if I received money as a gift. So if My parents gave me the necessary funds for example and is transferred into an           unencumbered investment         account, is that ok? Do the funds need to be in the account for a certain time? Could they question the fact that there is suddenly a lump sum deposit into the          account?

Lastly, does anyone know what the tax implications are on cash gifts?

 

 

 

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MaryJane
21 minutes ago, RikusF said:

Lastly, does anyone know what the tax implications are on cash gifts?

As per SARS website: http://www.sars.gov.za/ClientSegments/Individuals/Tax-Stages/Pages/Tax-and-Inheritance.aspx and http://www.sars.gov.za/TaxTypes/DonationsTax/Pages/default.aspx

For individuals, donations are subject to a Donations Tax of 20%, with an annual exemption of up to R100,000 of the value of all donations made during the tax year. For example, if a once-off donation of R80,000 is made by an individual, no tax is payable, but if a donation of R140,000 is made, then Donations Tax of R8,000 is payable (20%  of the amount exceeding R100,000, which is R40,000). For companies or trusts, the exemption for casual gifts is up to R10,000 per tax year.

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RikusF

Thank you MaryJane. Would a gift suffice if used as POF?

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MaryJane

I know people have used gifts as POF. I think there is an affidavit that has to go with it.

Here are some comments from @CilliersC talking about gifts being used as POF.

On ‎1‎/‎5‎/‎2016 at 7:07 AM, CilliersC said:

Apart from the funds source, the whole point of showing banking statements is to show that the money didn't just simply land in the account and isn't borrowed; it's something that has been saved up, built up over time of 6 months minimum statements if I remember correctly;

What did Deanne say in your initial consult as you would have to show this proof of funds when you get your invitation to apply regardless?

As far as I know the only other solution is to have the funds gifted to you and the source has to write up quite an explanation with supporting banking documents stating that the money is a gift and is not temporary and needs to be returned.

This has been discussed quite a lot on the international forum here : http://www.canadavisa.com/canada-immigration-discussion-board/a-complete-way-to-nail-source-of-fund-dilemma-t349224.0.html

Hope this helps and all the best :ilikeit:

 

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GrantM
4 hours ago, RikusF said:

Would a gift suffice if used as POF?

My understanding is that you will just have to supply enough evidence to show that it is actually a gift and not a loan that would need to be repaid.

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louisrdev
On 2/13/2016 at 10:27 PM, Frank said:

Hi, while on this unfortunate topic (and not to hijack it, but it ties into the topic) we are going the route of pension fund as POF. Would our credit card debt be subtracted from the pension to arrive at the available funds? We are then slightly screwed as we are funding Wes and ielts (and some very important personal matters) on credit ? as we do not have any surplus savings unfortunately 

Does anyone know the answer to the question above asked by Frank. I am wondering about the same thing and I have not been able to find a concise answer to this.

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Guest
On 13/02/2016 at 3:27 PM, Frank said:

Hi, while on this unfortunate topic (and not to hijack it, but it ties into the topic) we are going the route of pension fund as POF. Would our credit card debt be subtracted from the pension to arrive at the available funds? We are then slightly screwed as we are funding Wes and ielts (and some very important personal matters) on credit ? as we do not have any surplus savings unfortunately 

 

5 hours ago, louisrdev said:

Does anyone know the answer to the question above asked by Frank. I am wondering about the same thing and I have not been able to find a concise answer to this.

Assuming that you have a large amount of debt that you have to settle before leaving ZA and are going to use your pension / provident funds to settle them this will naturally reduce the funds available for proof of funds. 

Put together a balance sheet of sorts of your finances and determine what the exact ZAR amount would be after all your debt is paid off and be totally honest and realistic when doing this exercise taking into account taxes to be paid on the pension / provident funds. Then evaluate your situation and decide if the sum of money will suffice. 

When you make the application, you should have the funds required by CIC available and be able to prove that the amount required is going to used for settlement in Canada. In other words you would have to provide statements from your bank account / pension fund and supporting documentation showing the deductions for taxes etc. to arrive at the final amount that you are going to be using for POF. 

@GrantM maybe your input on what you did would help here. 

Edited by AshB

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Ominous_Hashtag
On 2/13/2016 at 5:52 AM, MaryJane said:

Hi @TraceyOB, according to the CIC website:

Document requirements

  • The applicant should provide an official letter(s) from one or more financial institutions that lists all current bank and investment accounts as well as outstanding debts, such as credit card debts and loans.
    • o The letter(s) must be printed on the letterhead of the financial institution and must include the applicant’s name, the contact information of the financial institution (address, telephone number and email address), the account numbers, the date each account was opened and the current balance of each account as well as the average balance for the past six months.
  • Other documents may also be requested, as necessary.

Information from here - http://www.cic.gc.ca/english/resources/tools/perm/express/intake-complete.asp

Soooo... what will happen if I have car finance at the same institution where I keep my POF and they have to state ALL my accounts/loans on the letter? That will put me in an impossible situation as the debt will seem to undermine my available net funds to a point where I have no chance of having the required amount... 

In reality this is not the case because the settlement value on my car finance is much lower than the trade-in value of my vehicle (I paid a big deposit). I confirmed this. In fact when I sell my car when I immigrate I'll be sitting with a nice bit of extra cash.

Can I influence this situation in any way? Is my last resort to refinance the vehicle at a different bank?

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MaryJane

@Ominous_Hashtag You could probably submit a statement of assets and liabilities to show your calculation of your settlement funds. Don't know if this will help. I suppose it depends on the immigration officer that will handle your case. Some pre-EE applicants did this when we applied for immigration in the olden days.

You could use the sample provided by @GrantM in his post below and tweak it a bit to show all other assets and debts.

On ‎11‎/‎17‎/‎2014 at 2:19 AM, GrantM said:

I actually left the assets and liabilities blank, I don't own a house or a car and also don't have any liabilities except for my credit card.

I submitted this schedule along with a bank stamped statement and my pension fund statement. I have got PER.

Settlement%20funds%20letter1.jpg

 

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GrantM

Hmmm... The only advice that I can add is that you need to remember that the officers dealing with your files are probably not accountants. So don't make things too complicated. I was lucky enough not to have any debt (we rented a house, I had a company car and my credit cards were paid every month). So I would just do a simple reconciliation of available funds kinda like what MJ posted above but also showing the money you owe and net it off. Remember if you show a bond/mortgage to show the corresponding asset.

But above all - keep it basic.

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